Townnews-Sha Co., Ltd. (2481) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shobunsha Holdings, Inc.

Townnews-Sha Co., Ltd.

SE Holdings & Incubations Co., Ltd.

Alphapolis Co., Ltd.

Starts Publishing Corp.

Success Holders, Inc.

Impress Holdings, Inc.

Printnet, Inc.

Seki Co., Ltd.

Bunkeido Co., Ltd.

Kadokawa Corp.

Why is Townnews-Sha Co., Ltd. ?

Poor Management Efficiency with a low ROE of 7.70%

The company has been able to generate a Return on Equity (avg) of 7.70% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 7.70%

Poor long term growth as Net Sales has grown by an annual rate of 8.12% over the last 5 years
The company has been able to generate a Return on Equity (avg) of 7.70% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.12% over the last 5 years

Positive results in Mar 26

CASH AND EQV(HY) Highest at JPY 4,610.95 MM
NET SALES(Q) Highest at JPY 1,307.56 MM
OPERATING PROFIT(Q) Highest at JPY 412.27 MM

With ROE of 7.95%, it has a fair valuation with a 0.65 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -11.00%, its profits have risen by 8.5% ; the PEG ratio of the company is 1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Townnews-Sha Co., Ltd. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Townnews-Sha Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Townnews-Sha Co., Ltd.

-10.87%

-0.73

19.00%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.12%

EBIT Growth (5y)

49.85%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

0.75

Tax Ratio

33.34%

Dividend Payout Ratio

28.37%

Pledged Shares

Institutional Holding

ROCE (avg)

19.98%

ROE (avg)

7.70%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.65

EV to EBIT

2.04

EV to EBITDA

1.88

EV to Capital Employed

0.38

EV to Sales

0.30

PEG Ratio

0.97

Dividend Yield

ROCE (Latest)

18.82%

ROE (Latest)

7.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

CASH AND EQV(HY)

Highest at JPY 4,610.95 MM

NET SALES(Q)

Highest at JPY 1,307.56 MM

OPERATING PROFIT(Q)

Highest at JPY 412.27 MM

OPERATING PROFIT MARGIN(Q)

Highest at 31.53 %

PRE-TAX PROFIT(Q)

Highest at JPY 410.77 MM

NET PROFIT(Q)

Highest at JPY 263.66 MM

EPS(Q)

Highest at JPY 47.76

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.41 times

Here's what is working for Townnews-Sha Co., Ltd.

Net Sales

Highest at JPY 1,307.56 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 412.27 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 31.53 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 410.77 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 263.66 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 47.76

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 4,610.95 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 19.4 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 19.4 MM has Grown at 61.12%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Townnews-Sha Co., Ltd.

Debtors Turnover Ratio

Lowest at 9.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio